What's happening
This bill changes how payments in lieu of taxes are calculated for property acquired by the authority, tying increases to local tax rate changes.
Why it matters
Links local tax increases to PILOT payments. The bill ensures that payments in lieu of taxes (PILOTs) made by the authority for acquired property will rise only if local tax rates increase, rather than allowing automatic yearly increases.
Potentially stabilizes municipal and school district revenue. By tying PILOT increases directly to actual tax rate changes, local governments and school districts may experience more predictable, but possibly smaller, yearly revenue changes.
Limits authority’s payment growth. The amendment prevents the authority’s PILOT obligations from outpacing local tax rate growth, potentially helping the authority better manage its financial planning and budgeting.
Reflects actual property tax dynamics. The change bases PILOT adjustments on the real, assessed value and tax rate for the current year, making the process more closely mirror what would happen if the property remained on the tax rolls.
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Who cares
Long Island Power Authority
The bill would replace the two-percent annual growth cap on its payments in lieu of taxes with a limit tied to tax-rate increases and current-year assessed values.
Municipalities receiving LIPA payments
The bill would change how payments for former LILCO property removed from tax rolls are calculated, starting with the tax year beginning December 1, 2020.
School districts receiving LIPA payments
Their payments would be subject to the new formula, which uses increases in the total tax rate, if any, and assessed values on the current year's final assessment roll.
Headline styles
Cap LIPA Tax Payments
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit LIPA Tax Payments
In Senate Committee · Energy And Telecommunications · Sponsor Monica Martinez
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7802
2019-2020 Regular Sessions
IN ASSEMBLY
May 23, 2019
Introduced by M. of A. THIELE -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to payments in lieu of taxes
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 1020-q of the public authorities law, as amended by section 8 of part A of chapter 173 of the laws of 2013, is amended to read as follows:
1. Each year after property theretofore owned by LILCO is acquired by the authority by any means authorized by this title and, as a consequence, is removed from the tax rolls, the authority shall make payments in lieu of taxes to municipalities and school districts equal to the taxes and assessments which would have been received from year to year by each such jurisdiction if such acquisition had not occurred, provided, however, that for the [calendar] tax year starting on [January] December first, two thousand [fifteen] twenty, and for each [calendar] tax year thereafter, such payments in lieu of taxes shall [not exceed the in lieu of tax payments made to such municipalities and school districts in the immediately preceding year by more than two percent] equal no more than two percent of the increase in total tax rate for the current tax year over the total tax rate of the prior tax year, if any, based upon the assessed value as reflected on the final assessment roll of the current tax year.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11579-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.